Havilah keeps $100m SIMEC deal on track

Drilling at Grants Basin. Image: Havilah Resources.

Havilah Resources has submitted an application to the Takeovers Panel claiming a co-founder and former director has been misleading shareholders.

The claim relates to a $100 million funding proposal from GFG Alliance subsidiary SIMEC Mining and accuses former director Keith Johnson of deceiving shareholders prior to a general meeting scheduled for next month.

Havilah claims that Johnson has 38.51 per cent of shares in Havilah through his control or influence of other shareholders. It also claims he has acquired 6.6 per cent of Havilah shares from another shareholder.

The company is looking to restrain Johnson and “certain other Havilah shareholders” from voting at the general meeting.

If the funding proposal is approved, GFG is expected to hold a 51 per cent share in Havilah should all conditions be met.

Havilah chief executive Walter Richards has previously described the SIMEC proposal as a “transformational opportunity.”

The $100 million funding would take place under a share subscription agreement that would provide capital for its Mutooroo copper-cobalt district, Maldorky, Grants and Grants Basin iron ore assets in South Australia. Funds will also be used for exploration and corporate costs.

A partnership would allow potential access to GFG’s steelworks and export facility in Whyalla, South Australia.

GFG will also have the potential to acquire direct equity interests in Havilah’s iron ore assets.

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